Tech giant Microsoft Inc MSFT is preparing to lay off thousands of employees, according to multiple reports.
What Happened: The Redmond, Washington-based company has more than 200,000 employees and will be cutting 11,000 jobs or about 5% of its workforce, according to Sky News, as reported by Reuters. Those cuts will include 6,000 positions in the U.K.
The job cuts will affect several engineering divisions, and those layoffs will take place on Wednesday, according to sources who spoke to Bloomberg.
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Additionally, Microsoft is expected to lay off as much as one-third of its recruiting staff, according to a Business Insider report. A person who spoke to the outlet said Microsoft has put a freeze on hiring and may not resume its normal hiring rate for one or two years.
In October 2022, the company downsized workers over concerns about weaker sales of Windows licenses for PCs, those cuts impacted fewer than 1,000 people.
The software giant has not commented on the reported layoff plans.
Other Tech Giant Layoffs: Microsoft's anticipated announcement comes after reports earlier in January that Amazon.com, Inc AMZN would be laying off more than 18,000 workers.
Meanwhile, Meta Platforms Inc META announced it would be terminating more than 11,000 employees, about 13% of its workforce last November.
CEO Mark Zuckerberg said he was accountable for Meta's overstaffing and his over-optimism surrounding growth. “I got this wrong, and I take responsibility for that,” he acknowledged.
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